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Please show all your calculations. Partial credits are not available for results only. 1. Suppose your company is offering shares in German stock markets. Using
Please show all your calculations. Partial credits are not available for results only. 1. Suppose your company is offering shares in German stock markets. Using the following assumptions, answer the questions. German risk-free cost of debt in euros () 3.24% Your company's cost of debt in euros () 2.96% German corporate income tax rate 15% Your company's beta 1.22 German equity market risk premium (equity return over risk-free) Your company's shares outstanding 16,790,000,000 Your company's share price in euros 111.62 Your company's debt outstanding in euros 45,306,349,206 4.45% (a) What is your company's cost of debt, after-tax? (3 pts.) (b) What is your company's cost of equity? (3 pts.) (c) What is your company's total value of equity outstanding? (3 pts.) (d) What is your company's weighted average cost of capital? (3 pts.) (e) What is your company's WACC if its beta was l? (3 pts.) D Focus
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